Else Nutrition Holdings Inc (BABYF)

[BruceLake]

We sure did know that it was coming, but many of us froze like a deer facing headlights.

What I don't like about this latest round of financing is that it reminds me too much of another stock where shareholders got wiped out. At least in this case the Company is being upfront in letting everyone know about the other draws which for sure will follow.

Following the Initial Convertible Security issuance, the Company would have the right to draw a further US$1,250,000 (which may be increased to US$3,000,000 upon mutual agreement) (the “Second Draw”), subject to the terms of the formal agreements, and thereafter an optional follow-on investment of up to US$6,500,000, (the “Third Draw”), upon mutual agreement, in exchange for the issuance of additional convertible notes.

Finally decided to pull the plug on all my shares which so far is most of today's volume on the TSX. Maybe after the third draw I will revisit, but I doubt it.

Good luck!